Calculating Cost to Own

Measuring Value and Rating Vehicles

Despite having the same purchase price, the vehicle with the lower ownership costs is a better value than the one having the higher
ownership costs.

To determine the expected cost of ownership, Vincentric measures more than 1,900 vehicle configurations,
combining the costs associated with ownership, listed below. Statistical models are used to correlate the price of
a vehicle with its cost of ownership among 34 vehicle segments. An average expected cost to own is established.

Ownership Costs

Depreciation is an estimate of the reduction in value incurred by owning and operating a vehicle over a period
of time. The depreciation cost is calculated using a combination of data sources and assumptions, including the value
of the vehicle, the mileage of the vehicle, and the overall the condition of the vehicle.

Fees and taxes are an estimate of the costs you will incur to operate the vehicle over a period of time. Fees and taxes are imposed by state and
local governments and government agencies, such as the DMV, and they include the cost of registration, title fees,
and state sales taxes. This calculation includes the Federal Hybrid Tax Credit.

Financing is an estimate of what
it will cost you to borrow money to purchase a vehicle. The financing costs are calculated by using various data
sources from multiple lending institutions, including standard down payment amounts, loan terms, and current interest
rates.

Insurance costs are an estimate of what it will cost you to insure the vehicle over a period of time. Insurance
costs vary widely based upon the driving record of the owner and the coverage amount, so assumptions about the driver
and coverage amount plus data from multiple insurance industry sources are used for estimating.

Fuel costs are an
estimate of what it will cost you at the gas pump for the vehicle over a period of time. Fuel costs are calculated
using the U.S. Government Environmental Protection Agency's estimated mileage figures (when available) for both highway
and city driving, then adjustments are made based on the estimated percentage of mileage for these two types of driving.
The estimated miles driven per year, the type of fuel the vehicle requires, and current state gas prices are all
factored into the estimated fuel costs.

Maintenance costs are an estimate of what it will cost you to maintain the
vehicle over a period of time. Maintenance costs can vary greatly based upon the vehicle you own and how you drive
it, but the maintenance cost estimated is based on three key data points that we receive from industry sources: frequency
of incident, labor rates, and parts prices. This tabulation factors both scheduled and unscheduled maintenance. Repair
costs are an estimate of what it will cost you to repair the vehicle over a period of time.

Repair costs are estimated
using the national average consumers will pay to keep their vehicle in operating condition (please note that because
maintenance costs are measured separately, the repair cost does not include these costs). The estimate is prepared
using a $0 deductible extended service contract that will pay for repairs for 5 years or at least 75,000 miles. Figures
quoted are averages from nationally-available service contract providers and are adjusted to eliminate the profit
margin from the calculation.

Scoring 1-5

Vincentric uses an approach to rate each vehicle from poor to excellent
on a five-point scale. The scores are calculated based on the percentage difference between a vehicle's expected
and measured cost-of-ownership. This statistically-driven approach allows Vincentric to measure value in an unbiased
manner, and help consumers and the automotive industry better understand how ownership costs impact the creation
of value for the buyer.

The score for a specific vehicle can be seen on the details page under cost to own.